Home Depot Inc HD released its third-quarter earnings report Tuesday, posting revenue and EPS beats, aided by recent bouts of extreme weather. Analysts are still bullish on the Atlanta, Georgia-based company.Home Depot Analysts: The following analysts published notes on Tuesday:Goldman Sachs analyst Kate McShane reiterated a Buy rating for Home Depot, raising its price target from $384 to $410.J.P. Morgan analyst Christopher Horvers reiterated an Overweight rating for Home Depot, raising its price target fr ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Home Depot said retail theft continues to be a challenge.CFO Richard McPhail said the operating environment is "getting harder and harder."However, the executive said investments to combat shoplifting and organized theft "are paying off." Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while you're on ...

The Home Depot Inc. (HD) has reported third-quarter fiscal 2024 results, wherein earnings and sales surpassed the Zacks Consensus Estimate. Meanwhile, the company’s top line improved year over year in the third quarter of fiscal 2024, while earnings per share declined year over year.Home Depot's adjusted earnings of $3.78 per share declined 1.8% from $3.85 in the year-ago quarter. However, the bottom line beat the Zacks Consensus Estimate of $3.65.Find the latest EPS estimates and surprises on Zacks Earning ...

Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $40.2 billion, an increase of 6.6% from the same period last year. Comparable sales declined by 1.3%, with U.S. stores experiencing a negative comp of 1.2% [8][40] - Adjusted diluted earnings per share were $3.78, down from $3.85 in the same quarter last year, reflecting a decrease of approximately 2% [8][44] - Gross margin was approximately 33.4%, a decrease of 40 basis points from the previous year, primarily due to the mix impact from the SRS acquisition [41][42] - Operating margin for the quarter was 13.5%, compared to 14.3% in Q3 2023 [42] Business Line Data and Key Metrics Changes - Comp transactions decreased by 0.6%, and comp average ticket decreased by 0.8%. Big ticket comp transactions (over $1,000) were down 6.8% compared to the previous year [31] - Pro sales outpaced DIY sales, with pros engaging with the Pro Ecosystem showing the strongest performance [32] - Seasonal categories such as power, outdoor garden, building materials, indoor garden, and paint posted positive comps, while lumber, plumbing, and hardware were above the company average [30] Market Data and Key Metrics Changes - Four out of 19 U.S. regions delivered positive comps, with Mexico and Canada posting comps above the company average in local currency [9] - Hurricane-related sales contributed approximately $200 million, positively impacting total company comps by about 55 basis points for the quarter [40] Company Strategy and Development Direction - The company is focused on creating the best interconnected experience and growing Pro wallet share through differentiated capabilities and new store openings [12][13] - Investments in supply chain facilities and website enhancements aim to improve delivery speeds and customer engagement [14][15] - The company is committed to supporting the growth of the SRS business and leveraging cross-sale opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued macroeconomic uncertainty and its impact on larger remodeling projects due to higher interest rates [11][81] - The updated guidance for fiscal 2024 reflects better-than-expected performance in Q3 and anticipated hurricane-related demand in Q4, with total sales growth expected to be approximately 4% [12][48] - Management remains optimistic about growth opportunities and is committed to investing in capabilities to strengthen competitive positioning [18][49] Other Important Information - The company opened five new stores, bringing the total store count to 2,345, with merchandise inventories at $23.9 billion, up approximately $1.1 billion from the previous year [45] - The effective tax rate for the quarter was 24.4%, compared to 23.3% in Q3 2023 [44] Q&A Session Summary Question: Impact of hurricane-related sales on overall performance - Management noted that hurricane-related sales contributed approximately 55 basis points to Q3 performance, with a mix of DIY and pro sales [54][55] Question: Market share performance relative to the industry - Management indicated that the company took market share, outperforming competitors in several product categories, particularly in seasonal and building materials [75][77] Question: Future outlook on home improvement demand - Management expressed that while macroeconomic uncertainties persist, there are signs of potential recovery in home improvement demand as interest rates stabilize [101][104] Question: Tariff impacts on sales - Management stated that any new tariffs would have an industry-wide impact, but the company is well-prepared to manage through such changes due to its sourcing strategies [108][109]

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HD, LOW, JNJ, TFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered ...

Company Earnings Summary - Home Depot (HD) reported earnings of $3.78 per share, beating the Zacks consensus estimate of $3.64 by +3.85%, with quarterly revenues of $40.22 billion, exceeding expectations by +2.17%. This marks the fourth consecutive earnings beat for the company, and shares rose +1.7% following the announcement, with an +18% increase year-to-date [4]. - Shopify (SHOP) experienced a revenue growth of +26% to $2.16 billion, surpassing analyst expectations of $2.11 billion. Despite a slight miss on earnings per share at 26 cents, shares surged +22% post-report, reflecting strong investor confidence [5]. - Tyson Foods (TSN) achieved a significant earnings beat of +43.75%, reporting 92 cents per share against an expectation of 64 cents, with revenues of $13.57 billion, exceeding the forecast of $13.33 billion. Gross margins improved to +7.8%, significantly higher than the +3.1% from the previous year, leading to a +6% increase in pre-market shares [6]. Market Overview - The S&P 500 index has seen five consecutive sessions of gains, reaching new closing highs, although it is currently down -4 points. The Nasdaq is also at all-time highs but is down -3 points, while the Dow is up +31 points. The small-cap Russell 2000 index is down -14 points. Bond yields are rising, with the 10-year yield at +4.392% and the 2-year yield at +4.334% [3].

Home Depot expects a smaller decline in annual store sales following better-than-expected performance over the past three months, which was partly driven by hurricane recovery efforts. "As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand," CEO Ted Decker said in the company's earnings release Tuesday. Decker told analysts Tuesday that the company's third-quarter performance exceeded expectations despite " ...

Core Insights - Home Depot's focus on the professional market remains strong despite a decline in consumer spending on home improvement [1][2] - The company reported a 6.6% year-over-year increase in quarterly sales, reaching $40.2 billion, and raised its full-year outlook [3] Company Strategy - Home Depot has invested billions over the past five years to enhance its professional offerings, including new distribution centers and improved supply chain logistics [3] - The company is shifting its focus to B2B demand among trade professionals, which has shown resilience amid economic uncertainty [2][4] Digital Transformation - A key aspect of Home Depot's strategy is its digital overhaul, providing pros with a faster shopping experience, job site deliveries, bulk pricing, and personalized accounts [5] - The company has ramped up workforce training to better support professional clients, ensuring employees can address technical questions and recommend tailored solutions [6] Market Dynamics - The pro market is inherently more stable due to contractual obligations of commercial clients, which helps maintain a steady demand pipeline [4] - Home Depot's pro ecosystem has shown growth across 17 markets, with strong performance in lumber, plumbing, and hardware [7] Recent Developments - Earlier this year, Home Depot acquired SRS for $18.2 billion, enhancing its distribution capabilities for roofing and construction projects [8] - Despite the positive sales growth, the company has experienced eight consecutive quarters of negative comparable sales and anticipates opening around a dozen new stores this fiscal year [9]

Home Depot (HD) reported $40.22 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.7%. EPS of $3.78 for the same period compares to $3.81 a year ago.The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $39.36 billion. With the consensus EPS estimate being $3.64, the EPS surprise was +3.85%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...